Cannabis: Cann is Australia’s pot king after scoring a manufacturing licence through IDT
Health & Biotech
Health & Biotech
Link copied to
Cann Group (ASX:CAN) finally has access to a cannabis manufacturing licence, completing the trifecta for the company.
The pot stock will be working through IDT Australia (ASX:IDT), an Australian pharmaceuticals manufacturer which is the recipient of the licence.
Only a handful of other companies have all three licences from the Office of Drug Control which allow them to research cannabis, grow it, and manufacture products from it.
The others include AusCann (ASX:AC8), the first listed company to receive all three, Little Green Pharma in West Australia and MediFarm in Queensland.
Of the listed companies, only Cann has a growing permit — the permission slip that dictates what a company can grow, when, and what it can do with it. This is the final hurdle for actually growing marijuana legally in Australia.
IDT will be allowed to make the resins Cann wants to sell to companies such as AusCann as well as make final dose forms such as tinctures, liquids and tablets.
Cann linked up with the pharmaceuticals maker in August last year.
At the time IDT CEO Dr David Sparling told Stockhead its small market cap shouldn’t belie its experience as a pharmaceuticals manufacturer — the company has been around since 1975.
China is becoming big news in the world of hemp, given they grow nearly half of the world’s supply and made $1.2bn from hemp textile sales last year.
It’s an area that has been largely ignored by ASX pot stocks so far except by a handful including Stemcell United (ASX:SCU), which has finally completed the acquisition of 51 per cent of Yunnan Huafang Industrial Hemp Co (HFIH) for RMB3.8m ($794,952).
Stemcell first flagged the deal in April last year.
HFIH has an industrial hemp licence in China which lets it plant, process and sell industrial hemp related products in China (high CBD, low THC cannabis strains).
Hemp farming and the production of CBD products have been legalised in Heilongjiang and Yunnan provinces, but while it has long been used in traditional medicine it’s unclear how legal the ingredient is nationally.
Stemcell’s purchase of HFIH was conditional on the Chinese company getting a hemp licence so the Australian-listed business could access it for stem cell research that would later help it make traditional Chinese medicine cosmetics.
They say it makes them the first foreign companies to access the Chinese hemp market.